News Column

AngloGold Ashanti Says Second Quarter Output Up 17%

August 11, 2014

Anthony Tshibangu

LONDON (Alliance News) - AngloGold Ashanti Monday said its gold output rose 17% in the second quarter compared with the same period a year earlier, as its two new mines continued to contribute lower-cost ounces.

The gold miner said all-in sustaining costs fell 19% in the second quarter on a year earlier, while capital expenditure fell 44% and earnings before interest, taxation, depreciation and amortisation rose 33%.

AngloGold said this helped turn around a cash burn of USD488 million in the second quarter of 2013, to a positive cash flow of USD34 million, notwithstanding a USD132 per ounce drop in the price of gold.

The company also said it is in the process of restarting its Great Noligwa and Moab Khotsong mines which were halted following a 5.3 magnitude earthquake last Tuesday.

On Wednesday the company said all workers were safely hoisted to the surface following the earthquake in South Africa's North West province.

AngloGold said Monday that the mines are being restarted in a "phased fashion", following evaluation of seismic activity in the area and after thorough inspections of vertical shafts and horizontal underground infrastructure. The first production shift is scheduled for Monday evening.

Based on the inspections to date, ongoing work underground and on surface, and an understanding of the likely power-supply scenarios, and assuming no further tremors affect production, AngloGold Ashanti said it estimates that the interruption to operations resulting from last week's earthquake will result in lost output of about 30,000 ounces of gold.

AngloGold said this estimate of lost production, and the consequential impact on unit costs, may be adjusted higher or lower as recovery work continues.

AngloGold shares were quoted down 12% at 875.50 pence Monday morning.

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Source: Alliance News

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